High Court Orders Release of Detained Goods with Bank Guarantee for Duty Dispute

The High Court directed the release of goods detained by the Directorate of Revenue Intelligence (DRI) upon payment of due duty. The petitioners were required to provide a bank guarantee for disputed exemption of basic custom duty. Despite delays and objections by the authorities, the Court confirmed the goods as Cold Rolled Steel and ordered their release upon payment of duty and furnishing bank guarantees. The judgment emphasized accurate duty calculations, proper conduct by authorities, and timely release of goods to ensure fair treatment of the petitioners and adherence to legal procedures.

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Issues:
Release of detained goods, payment of duty, furnishing bank guarantee, dispute over nature of goods, conduct of respondent authorities, calculation of duty, bank guarantee details, release of consignments.

Analysis:
The High Court directed the release of goods detained by the Directorate of Revenue Intelligence (DRI) upon payment of due duty. For disputed exemption of basic custom duty, the petitioners were asked to provide a bank guarantee. In one case, an additional bank guarantee was required to cover interest on demanded duty. The DRI initially detained goods as Hot Rolled Coils/Sheets, later found to be Cold Rolled Steel as claimed by the petitioners. Despite court orders, the goods weren't released, and the Department demanded PD Bonds, which was objected to by the petitioners. The Court noted the delay and apparent harassment by the authorities, emphasizing that the Department's stance was incorrect, as confirmed by testing at Bokaro Steel Plant.

During proceedings, the Court requested details of duty payable and bank guarantees. The petitioners provided duty calculations for various consignments, which were accepted by the Court due to the respondents' conduct. The Court directed the release of consignments upon payment of duty and furnishing bank guarantees. The Court detailed duty amounts and bank guarantee requirements for each consignment, ensuring immediate release upon compliance. The matter was adjourned to a later date.

The judgment highlighted the need for accurate duty calculations, proper conduct by authorities, and timely release of goods. The Court's decision aimed to resolve the dispute, ensuring fair treatment of the petitioners and adherence to legal procedures.

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